Through C-heavy route, production is only 4% sugar equivalent – volumes will be hardly anything to compensate for losses of sugar/ ethanol companies. C Heavy prices will have to be increased further by 10 to 15% and even then the losses will not be compensated – this is simple maths. Instead govt has increase prices of maize based ethanol – now sugar mills will move from cane to maize and cereal prices will shoot up… biggest losers are farmers…
Sugar mills have already cancelled their expansion plans for ethanol. the owners (i have spoken to a few) will prefer to dividend out profits (or through buyback as Balrampur and Dhampur Sugar have done) and invest elsewhere. As far as current capacities are concerned they will try to optimise between sugar and ethanol and increase margins.
Ethanol plants in Maharashtra also shut…
Only way forward for ethanol supplies to increase is govt backed co-op mills will set up ethanol plants – and probably make losses and then shut down !!
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